Job Insecurity and Psychological Well-being: Review of the Literature and Exploration of Some Unresolved Issues

Abstract

Research on the psychological consequences of job insecurity is reviewed, showing that job insecurity reduces psychological well-being and job satisfaction, and increases psychosomatic complaints and physical strains. Next, three additional research questions are addressed, since these questions did not receive much attention in previous research. First, does the impact of job insecurity on workers differ according to their professional position, gender, and age? Second, how important is job insecurity compared to other stressors on the workfloor? Third, how important is job insecurity compared to the impact of unemployment? To analyse these issues, data were used from a Belgian plant, part of a European multinational company in the metalworking industry (N = 336). The results of this exploratory study showed that job insecurity was associated with lower well-being (score on the GHQ-12), after controlling for background variables, such as gender and age. A significant interaction with gender occurred, indicating that gender moderated the association between job insecurity and well-being. Job insecurity was not related to psychological well-being among women. Among men, a significant increase in distress was noted among those who felt insecure, but not among the secure. Interaction terms for occupational position and age were not statistically significant. Job insecurity turned out to be one of the most distressful aspects of the work situation. The GHQ-scores of the insecure respondents were not different from those of a representative sample of short-term unemployed, suggesting both experiences to be equally harmful. The consequences of these findings for future research are discussed.